The Big Four auditor of a Christmas savings club that left 120,000 people out of pocket after it collapsed has been fined and reprimanded by the accountancy regulator.

EY was fined £750,000 and one of its former partners £50,000 for the firm’s 2005 audit of Farepak, which fell into administration in 2006 owing £37 million.

The Swindon-based Farepak allowed its customers — predominantly women on low incomes — to put money aside in the run-up to Christmas to pay for presents and food. Customers recouped about half of what they put in.